Debt worries ‘not curbing spending’

Britons appear to be happy to spend their money despite the recession and growing concerns about falling into debt, it has been suggested.

According to the Daily Mail, figures from Aviva Investors have revealed that retail spending in the UK has risen by almost seven per cent since the start of 2007, while it has fallen by the same amount in the US.

And in the eurozone, it has dropped by 1.1 per cent in cash terms for the same period.

Economist with Aviva Stewart Robertson noted that people in the country have been decreasing their expenditure in areas such as tourism and restaurants, while higher spending has been seen in shops.

Yet the news source commented that the organisation’s figures are “puzzling” as personal finances appear to be in a “fractured state” and “regular howls of pain” can be heard from the retail industry.

This opinion was recently corroborated by research from Abbey Savings, which found that people are intending to spend less on Christmas this year, cutting back on gifts for friends and family, as well as socialising.

By Sarah Adie